Sunday, December 30, 2012

The labor incentive effects of raising income taxes--a personal view

I like the stuff I buy.  If you raise my taxes, I will probably consult a little more so I can keep buying that stuff. This is the income effect being more important than the substitution effect.  I know that it is for me, and I am pretty sure it is for lots of others, as well.

"We are all in it together," and benefits taxes.

Tyler Cowen says that the Republican Party should propose raising taxes on everyone because, "we are all in it together."

To some extent, this is a benefits tax view--a view that we should pay to society our fair share of what we get from society.  But the implication of this is not necessarily that everyone should sacrifice in order to put us all on a sustainable fiscal path.

With Ronald Reagan's election in 1980, the US saw a sea change in tax and regulatory policy.  While the policy was suppose to benefit everyone, it clearly hasn't.  For the bottom quintile of the income distribution, income has risen about 5 percent since 1982 (the first year in which Reagan's policies bit); for the next quintile, it has risen 8 percent; for the next, 11 percent, for the next, 20 percent, and for the highest, 45 percent.  But most of the highest quintile didn't do so well--the top 5 percent has seen average household income rise by 68 percent.

These data are before tax, and come from the US Census, Table H-3.  Before anyone suggests that this means that everyone has benefited, I should point out that average income in the lowest quintile of the income distribution is $11,239, which is right at the Federal Poverty Level for a single person household.  In a benefits tax view of the world, people who haven't sufficient income to live should not be taxed (they are living at subsistence levels as it is, and taxing them makes thing worse).

So let's begin by holding the bottom quintile harmless in doing any kind of deficit reduction.  But what of the remaining quintiles?  If we look at the share of income growth by quintile (excluding the meager income growth of the bottom quintile), we find that 3 percent went to the second quintile from the bottom; 7 percent to the next; 18 percent to the next, and 73 percent to the top quintile.  So little has gone to the second and third quintile from the bottom that one could make a case that they should be left along as well.

The fourth quintile, though, has seen a material improvement in incomes, so it is probably OK to ask this group for something--this includes people who nearly everyone would consider middle class.  Nevertheless, the lion's share of the benefits of the policy changes of the early 1980s has appeared to go to the top quintile, and so the top quntile should pay the most to put us on a sustainable fiscal path.

One last calculation--the top 5 percent got 57 percent of the income growth within its quintile.

It is true that households move in and out of quintiles, but as Dalton Conley shows, not as much as we would like to think,  In any event, we have not been all in it together when it has come to benefitting from the policies of the past 30 years.

Wednesday, December 26, 2012

I'm back...

I've been having trouble coming back to blogging after the shooting at Sandy Hook Elementary School...   I'll be honest that every time I try to write something, I can't because the things I write about here are mostly frivolous & pretty inconsequential, and it seems ridiculous to be writing about those things like everything's okay when it isn't.

I know so many of us feel this way and that the pain won't ever fully go away for most of us...  And that's okay because it means we love and we care.

There are times when I look at my profession- decorating houses- and feel like what I'm doing is crazy when there are so many more important, life-changing things that need to be done.  There's been a stirring in me for a while now to use it to help others more.  I don't think there's any greater pain than losing someone you love and I know I want to somehow try to ease this pain for others.  Dave & I have been doing a lot of talking about it over the past few months & have some ideas cooking...

I've also heard that the students at Sandy Hook will be returning to school in a new building after the new year & that they are trying to turn the new school into a "winter wonderland" by filling it with thousands of paper snowflakes.  You &/or your kids can make snowflakes & send them to the PTA for them to hang.  Here's the write-up I read: "When school resumes for Sandy Hook, it will be in a new building. Parent-volunteers are working to ensure that the students are welcomed back by a winter wonderland with the entire school decorated with as many unique snowflakes as possible. We encourage senders to be as creative as possible, remembering that no two snowflakes are alike. Please make and send snowflakes by January 12, 2013." 

{image via here}

Please send all snowflakes and donations to:  
Connecticut PTSA 
60 Connolly Parkway 
Building 12, Suite 103 
Hamden, CT 06514

It's a simple project that can hopefully make some of the kids feel a little less frightened when they go back to school...

So...  I probably won't be talking about it much & I'll continue to write about the frivolous little things in life, but it will always be with me...  I won't ever stop praying for & thinking about all of the families in pain and I'll always worry a little more about my own babies.

{Our Christmas Eve snowfall}

I hope you had a happy holiday & this year, Christmas was really special for our family...  I'll be back after the New Year & am taking the time with my family & trying to savor every minute of it- and also to keep my eye from twitching when I look around at the mess that is my house.   ;) 

{My littlest one- Luke or "Louie" as we call him-sorry kid!!;)-  all tuckered out from the Christmas excitement}

Thank you so much for taking time out of your day to read my blog {and for not emailing me about the constant typos that I know are present ;)  and for coming along for the ride.   I truly value your time & your encouragement.  My very best to you & yours.

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     Photo by Fred - Easy Fashion Paris

Miss Irina - rue Cambon - Paris

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      Miss Irina - rue Cambon - Paris
        Photo by Fred - Easy Fashion Paris

Garry - Rue Tiquetonne - Paris

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      Garry - ModelRue Tiquetonne - Paris
        Perfecto by Zara
        Jeans by Diesel
        Belt by Levis
        Shirt by H&M
        Shoes & T-Shirt by Zara
        Silver rings from Greece
        Perfume "The One " by D&G
        Photos by Fred - Easy Fashion Paris

Miss Charlotte - Rue Montmartre - Paris

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       Miss Charlotte - Rue Montmartre - Paris
         Photo by Fred - Easy Fashion Paris

Samy - Montorgueil - Paris

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     Samy - Etudiant en communication
      Outfit vintage except
      Pants and Marcel by H&M
      Shoes by Sympatex
      Perfume "Fahrenheit" by Dior
      Photo by Fred - Easy Fashion Paris

Bruce - Montorgueil - Paris

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     Bruce - Etudiant en médiation culturelle - Montorgueil - Paris 
       Perfecto and Redingote vintage 
       Pants by H&M 
       Shoes by Creepers 
       Fingerless gloves found on the ground 
       Wrap from my Grand-Ma 
       Photo by Fred - Easy Fashion Paris
        No perfume

Friday, December 21, 2012

California leads

From California's Legislative Analyst's Office:

The 18th annual edition of the LAO's Fiscal Outlook--a forecast of the state's budget condition over the next five years--shows that California's budget situation has improved sharply. The state's economic recovery, prior budget cuts, and the additional, temporary taxes provided by Proposition 30 have combined to bring California to a promising moment: the possible end of a decade of acute state budget challenges. Our economic and budgetary forecast indicates that California's leaders face a dramatically smaller budget problem in 2013-14 compared to recent years. Furthermore, assuming steady economic growth and restraint in augmenting current program funding levels, there is a strong possibility of multibillion-dollar operating surpluses within a few years.
The voters of California raised taxes on themselves. Most of the revenue will come from income taxes on the top 3 percent of the income distribution; there is also a small hike in the sales tax.

Will Google, Apple, Intel, Disney, etc. run away because of this?  I rather doubt it.  And comparisons to Greece now look particularly ridiculous.

Thursday, December 20, 2012

Miss Marcela - Rue du Fg St-Martin - Paris

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     Marcela - Rue du Fg St-Martin - Paris
       Photo by Fred - Easy Fashion Paris

Miss Margaux - Rue Tiquetonne - Paris

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     Margaux - Press Attachée - Rue Tiquetonne - Paris
       Le plus grand rêve de Margaux: Monter sur scène
       Le pire cauchemar: Ne rien faire de sa vie
       Coat by Comptoir des Cotonniers
       Vintage Cap from Montmartre
       Shoes from the market
       Bag by Addict (Le Marais)
       Perfume by Narcisso Rodriguez

       Photos by Fred - Easy Fashion Paris

Miss Chloé - Rue Tiquetonne - Paris

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      Chloé - Rue Tiquetonne - Paris
        Coat by Mango
        Jeans by Diesel
        Shoes by H&M
        Cap by Big City
        Bag by Urban Outfitters
        Perfume BodySpray by Victoria Secret

Vincent - Rue Tiquetonne - Paris

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      Vincent - Shop Assistant - Rue Tiquetonne - Paris
         Outfit by KTZ
         Shoes by Naco Paris
         Cap by Phinsulate
         Photo by Fred - Easy Fashion Paris

Wednesday, December 19, 2012

The Potato Diet

In 2010, I wrote a series of blog posts on the health properties of potatoes (1, 2, 3).  The evidence showed that potatoes are non-toxic, filling per calorie, remarkably nutritious, and can be eaten as almost the sole source of nutrition for extended periods of time (though I'm not recommending this).  Traditional South American cultures such as the Quechua and Aymara have eaten potatoes as the major source of calories for generations without any apparent ill effects (3).  This is particularly interesting since potatoes are one of the highest glycemic and most insulin-stimulating foods known.

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John Griffith on why Gretchen Morgenson should not trust Edward Pinto

He writes in American Banker:

The onslaught began last month after the agency released a sobering financial report, then accelerated last week when the New York Times reported on an alleged "pattern of risky lending" in the agency's mortgage insurance program.
The Times piece, penned by columnist Gretchen Morgenson, relays the findings of a controversial new report from Edward Pinto of the conservative American Enterprise Institute. Pinto's study takes on an important issue—the performance of FHA-insured home loans—but draws conclusions based on ideology rather than a cold appraisal of the facts. By relying entirely on one man's misleading data and unfounded opinions, Morgenson has done a grave disservice to a critical federal program.

The report in question argues that the FHA is "financing failure" for working-class families by peddling high-risk loans to unworthy borrowers, based on an analysis of loans insured in 2009 and 2010. Pinto concludes that the agency's basic business model—insuring long-term, low-down-payment loans to borrowers with less-than-perfect credit—puts homeowners at an unacceptably high risk of default with negative consequences for communities.
Nothing could be further from the truth....

.... Pinto focuses on the cost of foreclosure without considering the FHA's contribution to these neighborhoods since the crisis began. If FHA insurance weren't available under reasonable terms, it would have been much more difficult for low- and moderate-income families to get mortgage credit since the crisis began. As a result, home prices would have declined precipitously beyond already-depressed levels – by as much as 25%,according to one estimate from Moody’s Analytics – leading to far more foreclosures on all homes, not to mention additional job loss, lost household wealth and a far deeper or more prolonged recession.

That counter-cyclical support is a key part of the agency's mission, and it understandably comes with some costs. If the foreclosure crisis were a fire, Pinto would be blaming the firefighters for getting the house wet.
In the coming months, we hope there is a serious debate about the FHA's role in the housing market and the overall role of the government in housing finance. That will require us to sort facts from partisan nonsense, and here's hoping this report doesn't make the cut.

Tuesday, December 18, 2012

Matthew Yglesias says weather doesn't matter

I just caught up with his Valentine to Minneapolis:

People appear to be deterred from moving to Minneapolis on the grounds that it's very cold, but David Schkade and Daniel Kahneman have found that people's thinking about weather and happiness is dominated by "focusing illusion" in which "easily observed and distinctive differences between locations are given more weight in such judgments than they will have in reality." They specifically looked at the weather gap between California and the Midwest and found that while Midwesterners thought the good weather in California would make a huge difference in people's lives, it doesn't in reality.
OK, maybe I am idiosyncratic.  But as a person who lived most of his life in Wisconsin (not as cold as Minnesota), and who now lives in California, I can tell you the three reasons I will most likely never leave this place:

(1) My wife does cool and useful things here.
(2) I like the people I work with very much.
(3) Weather.

George Bittlingmayer on Buffet v Asness

From comments:

Under this theory, if gross-of-tax discount rates are 10% and an investment promises $10 per year, I'll plunk down $100 for it if tax rates are zero, and $100 if tax rates are 50% and I get only $5 per year. "To be tested." Recall also, if tax rates are on nominal returns, with even moderate inflation, the tax falls on what is a compensation for inflation. The effect of higher taxes seems like an empirical question, with all due respect to both Buffett & Asness, and Richard.

I agree, it is testable.  One thing that makes testing tough, though, is trying to figure out how the market discount rate change as a result of tax policy.  IN any event my principal criticism of Asness is that if you are going to change the numerator, you also need to change the denominator.

Monday, December 17, 2012

Hannah Green in Think Progress on trash

She writes:

In India, there is a thriving market for trash. People make lives for themselves collecting it, sorting it, buying it, selling it: making it useful once again.
While the community of trash workers occasionally gets attention from the American media, the focus often revolves around the initial realization that people can earn a living from garbage piles, and what this says about poverty levels.
Katherine Boo’s recent book related to the subject, Behind the Beautiful Forevers, went deeper, exploring the mechanisms of entrepreneurship and exploitation in India. However, there is also a more positive side to this story that often goes uncommented on. An efficient recycling system has a long-term positive effect on society as a whole, and is also something that North America and Europe generally lack. That is a significant part of what the trash economy in India is- an informal recycling system.

Who is right: Clifford Asness or Warren Buffet?

In a Wall Street Journal piece this morning, a man named Clifford Asness says that Warren Buffet is wrong when he says the impact of taxes on investment decisions is very small.  His argument:

Consider how every business-school student, investment banker and investment analyst on Earth has been taught to choose whether to invest in a specific project or company. You make a spreadsheet (a napkin will do sometimes). You put in your best guess of the future cash flows, and you discount those cash flows back to the present at some required rate of return you believe reflects the risk entailed. Of course, opinions about the future cash flows and the proper discount rate can vary widely, but the essential methodology is ubiquitous.
Now here's the kicker: Nobody who pays taxes and has ever done this exercise has failed (while sober) to use after-tax cash flows in this calculation. Somewhere in the spreadsheet there is a number, say 20%, or 28%, or a Gallic 75%, representing the taxes you'll pay on the assumed cash flow—and you only count the amount you'll get after paying this tax. If you turn the tax rate up high enough, projects or companies that looked like good investments become much less attractive and vice versa.

Here is the problem with this argument--it focuses on the numerator of the discounted cash flow calculation, but not the denominator.  The denominator contains the discount rate, which is the opportunity cost of capital.  One can do an analysis based on before tax cash flows, in which case the denominator is the before tax OCC.  The formula for before tax cash flow valuation is

Where CF is cash flow subscripted by time t,  r is the discount rate, and E is the expectations operator.

But if one is going to take taxes out of the denominator, he must also take it out of the numerator.  This means the ATDCF formula needs to be

The greek letter τ is the marginal income tax rate.  If we examine this formula, we see that for small t, value does in fact decline with an increase in taxes.  But now let us approximate a long term investment by looking at the perpetual annuity formula--one that has a constant cash flow for infinite t.

Now the formula for before tax valuation becomes:

Analogously, the formula for after tax valuation becomes:

Of course, the (1-τ) divides through, so the after tax and before tax values are the same.

But here is where I will add a kicker of my own: if it is really true that fiscal issues as creating uncertainty, resolving those issues should reduce the discount rate, and thus encourage investment.  People such as Mr. Asness should welcome greater certainty, and the investment opportunities it will doubtless induce.

Miss Ruby Jena Nilson - Louvre - Paris

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      Ruby Jena Nilson - Louvre - Paris
        Photos by Fred - Easy Fashion Paris


I don't really have words for Friday.  I don't think many do.   
We've been holding our babies especially close and my heart truly breaks for the parents who can't. 
 I feel immense pride in the heroic teachers & administrators who died to protect the children, and it hurts so badly that these all of these beautiful lives are gone.     
Please take care of you & yours.


image via here.

Saturday, December 15, 2012

Miss Owlle - Le Marais - Paris

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      Owlle - Electro Pop Artist - Le Marais - Paris
        Coat by GAP
        Skirt and Top By CARVEN
        Photo by Fred - Easy Fashion Paris

Friday, December 14, 2012

Gust of Wind - Louvre - Paris

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      Gust of Wind - Louvre - Paris
        Photo by Fred - Easy Fashion Paris

Pretty Little Friday

Happy Friday!!  I wanted to pop in really quickly to say good luck with the holiday rush.  I try to periodically remind myself to appreciate the little things & so much of that for me (and I'm sure many of you ;) is about seeing the beauty in the every day...

Being able to sit down & share a meal with friends or family, having a moment to yourself, and yes, even appreciating the pretty produce at the grocery store...

{Would love to do a fabric based on these leafy clementines}
I am (as always) terribly behind in my holiday shopping (meaning I haven't done any;) but I've also learned that this is a time to be enjoyed & even savored.  This time wants to fly away.  The anticipation in our house full of boys is really cool and it brings back those Christmas-kid feelings I used to have.  Lately, life (although crazy-sort-of-losing-it-busy) has been exciting & special...  Full of lightning-quick days interspersed with moments where I notice something & really take it in...  and feel thankful for it.  I've been reminding myself to slow down and appreciate and I do think it's working.

Sending hugs & love your way and hoping you get some time to take the moments in.

If you'd like help creating a home you absolutely love, contact me about our design services.

Food Reward Friday

This week's "winner"...

The Pizza Hut hot dog stuffed crust pizza!

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For banks, nothing is illegal

This would be literally unbelievable, except that we've all become desensitized to the double standard of our justice system -- enforcement of laws against ordinary people, and systematic collusion with large banks and corporate offenders to keep anyone from going to jail. I think Matt Taibbi offers the most honest take on this shameful decision to slap HSBC with fines only, rather than pursuing what should have been slam-dunk prosecutions for money laundering and drug smuggling on a global scale:
Wow. So the executives who spent a decade laundering billions of dollars will have to partially defer their bonuses during the five-year deferred prosecution agreement? Are you fucking kidding me? That's the punishment? The government's negotiators couldn't hold firm on forcing HSBC officials to completely wait to receive their ill-gotten bonuses? They had to settle on making them "partially" wait? Every honest prosecutor in America has to be puking his guts out at such bargaining tactics. What was the Justice Department's opening offer – asking executives to restrict their Caribbean vacation time to nine weeks a year?

So you might ask, what's the appropriate financial penalty for a bank in HSBC's position? Exactly how much money should one extract from a firm that has been shamelessly profiting from business with criminals for years and years? Remember, we're talking about a company that has admitted to a smorgasbord of serious banking crimes. If you're the prosecutor, you've got this bank by the balls. So how much money should you take?

How about all of it? How about every last dollar the bank has made since it started its illegal activity? How about you dive into every bank account of every single executive involved in this mess and take every last bonus dollar they've ever earned? Then take their houses, their cars, the paintings they bought at Sotheby's auctions, the clothes in their closets, the loose change in the jars on their kitchen counters, every last freaking thing. Take it all and don't think twice. And then throw them in jail.

Sound harsh? It does, doesn't it? The only problem is, that's exactly what the government does just about every day to ordinary people involved in ordinary drug cases.

And people wonder why the US falls year after year a little further down the Corruption Perceptions Index? As of 2012, we're just slightly ahead of Chile, Uruguay and The Bahamas. 

Thursday, December 13, 2012

Is it Time to Re-write the Textbooks on Insulin and Obesity? Part II

A new paper published on December 6th in the journal Science once again tackles the question of whether elevated insulin drives the development of obesity (1).  Mice were generated that lack Jun kinases 1 and 2 specifically in immune cells, impairing their ability to produce inflammation while having very few off-target effects.  These mice do not become insulin resistant when placed on a fattening diet, and their insulin levels do not increase one iota.  Are they protected from obesity?  People who read the last post should know the answer already.
Read more »

Wednesday, December 12, 2012

Elements of a stable financial system

It's hardly a hell raising demand for revolution, but this speech by Michael Cohrs of the Bank of England is worth a quick read and offers some pretty encouraging signs that authorities -- in the UK, at least -- are moving (slowly) toward financial regulations that seem pretty sensible and might really help avoid future crises or make them less frequent. I read it as a kind of wish list, but of wishes that are fairly realistic.

On a theoretical level, perhaps the most important thing Cohrs calls for is greater awareness of economic and financial history, with the idea that we might prepare our minds better for the natural instabilities that seem to create crises so frequently:
At the heart of much of the current policy debate is how the FPC, PRA and FCA develop better processes for anticipating the next problem – whether the problem is an asset bubble, poor risk mismanagement or a flawed or misunderstood financial product. And these are important steps to take. But it seems to me there is an inherent tendency for policymakers to re-fight the last war. As I said above, I am a believer that understanding the past provides a foundation on which to assess the future. But we shouldn’t pretend we can eliminate financial crises completely. Nor that the next crises will necessarily be a carbon copy of the last one.
My anxiety about getting financial regulation to better mitigate future risks has its roots in the issues one sees in the financial crises of the past couple of hundred years or so. Virtually every type of financial institution has been the cause of a crisis at some point in history – country banks back in 1825, universal banks in 1931, small banks in the 1970s, savings and loan companies in the 1980s, international banks in the 1980s and 1990s (debt crises in Latin America and Asia respectively), and even a hedge fund in 1997.
Pretty much all types of financial institution got involved in the problems of 2007/2008. The roll call included insurance companies (although thankfully not those in the UK) alongside investment banks as well as some more traditional commercial and mortgage banks. I find it hard to see a common thread (other than high leverage ratios) amongst the types of institutions that struggled or the mistakes that they made. It is not clear that the reforms we are putting into place today would have, or could have, averted all the problems faced in these crises. Therefore, experience tells me its origins are unlikely to be in an institution and from a product that is obvious to us now. ... I realize this uncertainty is rather unhelpful.
Actually, I think it is very helpful. Nothing is more dangerous than belief that now , as we know how things can go wrong, we can probably perform a few engineering tricks and hence avoid further problems in the future. This was the facile belief furthered in the decade prior to the past crisis, especially in basic textbooks of economics and finance and research papers furthering belief in the inevitable "spiral to efficiency" of modern markets (infamously described in this rather embarrasing 2005 paper by Robert Merton and Zvi Modie, which was published even as the markets were on the verge of collapse!).

Cohrs goes on to discuss a number of ideas all being pursued with the idea of making finance more "sustainable." These include establishing simple rules by which large institutions can be wound down and let fail safely when they ought to (this might include using penalties or taxes to establish insurance funds beforehand to handle such events), making financial institutions LESS CONNECTED and changing the culture of finance as well so that financial institutions themselves "ensure they can be regulated." Ok, that final one may be a rather huge challenge.

The good thing is that people from the Bank of England are going around saying these things. Let's hope they can manage to put some of these principles in place, especially in some globally consistent way.

Tuesday, December 11, 2012

New Painting Work

I'm currently working on a series of paintings which I hope to exhibit in 2013. They are based around various motorcycles, I will be including various motorcycles from enthusiasts and builders. I'm really excited about this project and I will be posting updates in the coming months. Until then here are a couple of images to wet your appetite:

Vincent Rapide
(digital painting)
Produced as a study to quickly work out the composition and palette for the full oil painting.

 Studio shot showing my setup and the underpainting of the Vincent.

Oil Wash over Underpainting, to be continued....

Motorcycle Live 2012 with Royal Enfield

After attending the Watsonian Squire Centenary celebration at Stoneleigh Park earlier this year I was invited to sketch on the Royal Enfield and Watsonian Squire stand at this years Motorcycle Live at the Birmingham NEC.  This is a massive show with a lot of the big motorcycle manufacturers attending and putting on huge displays. I was very honoured to be sketching on the Royal Enfield stand as they are producing some very lovely bikes, including their latest model to be released next year the Cafe Racer. Thanks to Ben and the team at Royal Enfield for inviting me along and being so accommodating to what is essentially a sketching busker. For more information on Royal Enfield, Watsonian Squire and the Motorcycle Live event please click on the following links:

Royal Enfield Cafe Racer Concept

(A2 ink sketch)

On the Watsonian Squire stand they featured the SBW Motorrad a sidecar for the BMW R1200. This was a great challenge to sketch as it is a very complicated beast. The ink sketch was done at the show and the water colour was added back in the studio as I felt it needed more definition in order to make the various elements of the design more apparent.

BMW R1200 & SBW Motorrad Sidecar Outfit

(A2, water colour over ink sketch)

EFI 500 Engine Detail 

(A4 ink sketch)

Royal Enfield Bullet EFI

(A4 ink sketch)

Royal Enfield Bullet EFI

(A4 ink sketch)

Inky hands in action
I'm actually sitting on what I found out was a child's camping chair which I managed to break during one sitting. A bit of gaffer soon sorted it out and it lasted the rest of the weekend.
 Seeing that I had time to spend with the Royal Enfield's I decided to try some larger sketches, I really enjoyed working at this size and will definitely be doing more of this when sketching conditions are favourable.

 Harry Potter Sidecar

Barbour Sidecar Outfit

Backstreet Heroes and Streetfighters Custom Bike Show

After seeing this Triumph Drag Bike at the show I had to take the opportunity to sketch it. It turns out it's one of the latest builds to come out of Barons Speed Shop in Croydon. These guys are real vintage Triumph addicts and it really shows in the simplicity and period detail they include in their builds.

1953 Triumph T100, drag bike
(A3 ink sketch)
This bike is going to be raced next year so not just a show pony, great stuff. for more information on Barons Speed Shop please visit their website:

Next to the Triumph was this very neat BSA A65 Lightning

 Saddletramp Sportster
Based on a 1989 Harley Sportster.

 Coventry Transport Museum Display

Coventry Transport Museum had a great display of old bikes:

 1962 Francis Barnett 'Fulmar 88'
 1912 Rudge TT Special
1926 Rex Acme TT 
 1916 Lea Francis
1903 Riley 'Moto Bi' motor bycycle

Carol Nash Display

Vic Jeffords Carousel
As featured in Back Street Heroes
More metal flake than the human eye can withstand!

 Harley Street Bike

Manx Norton

This 1958 Bantam got my vote in the Build in Britain Competition.

Other Highlights 

 Mitesse Triumph

 Norton TT Bike
I like the rough an ready feel to this bike.